Mail Order Phone MOTO Merchant Processing
As a business, it is important to offer the latest and greatest in technology. This might mean creating a smartphone app or having an up to date website. This definitely means taking debit and credit cards over the phone or over the internet. However, as a merchant, it can be difficult to get a good rate for card not present or Mail Order Telephone Order (MOTO) transactions.
Why Do Banks Charge More for a MOTO Transaction?
Banks primarily charge a higher rate for transactions in which the physical card is not actually present, such as over the phone or via the internet. With a MOTO transaction, there is no way for the merchant to verify that the purchase is truly being authorized by card holder. The merchant has to accept payment on the presumption that it is the card holder making the purchase. In fraudulent MOTO cases, the underwriting bank is responsible for making restitution for the purchase. This differs from regular card swipe transactions in which the issuer of the card is liable for the transaction. Higher risk for the underwriting bank and a higher chance for fraud means a higher fee that is passed on to the merchant.
What is Being Done to Protect Against Fraud?
Many companies are actively working to help prevent fraud so the rates can be lowered. For example, many companies are now requiring the security code printed on the back of the card. This three or four digits printed somewhere on the card. It is commonly referred to as the “card validation or verification code” - CVV2 or CVC2 code. This is a separate code from the embossed card number that is harder to steal. It is an extra step to ensure that person entering the information has the card in their possession. Other companies are only shipping to approved addresses. This is not always the best preventative measure, but it does help prevent some forms of mail order fraud.
Why are the Measures Not Enough?
As a consumer, people do not want to go through a lot of hassle when it comes to making purchases online or over the phone. They simply want to go online or make a call and get the item they wanted. Some merchants have tried single use credit card numbers and other measures without any real success. People simply have not embraced the tighter control or stricter measures for MOTO transactions.
We offer competitive rates to securely process transactions in which the card is not present. We also actively work to provide the best security for transactions. Our specially trained staff can assist you in setting up with right plan to take your mail order telephone order transactions.
It’s tough in this economy for small businesses. We may not have every answer, but we work hard to provide the latest solutions for your debit and credit card processing. Consumers want a hassle free way to make payments, businesses want secure transactions with the best fee rate possible – we have the solutions for you.